Question

Deduce a formula for compound Interest on comparing quantities​

Answer 1

Compound interest is the interest calculated on the previous year's amount (A = P + I). We can also have interest rates compounded half-yearly or quarterly. If interest is compounded half-yearly, we compute the interest two times. So the time period becomes twice and rate is taken half.

Answer 2

Step-by-step explanation:

Amount = principal (1+Rate100) time in years----- if compounded annually.

compound Interest formula in maths:

Compound Interest = final amount-

original amount.